Hemas Holdings PLC Interim Report-- 2nd 1st Quarter 2014/ /15

Transcription

1 Hemas Holdings PLC Interim Report-- 2nd 1st Quarter 2014/ /15

2 CEO s Review It is a pleasure to present the results of your company for the first half of the financial year 2014/15. The group has recorded consolidated revenues of Rs. 15.7Bn, a growth of 22.0%, and group earnings of Rs. 887Mn, a drop of 9.9% over the same period last year. However last year s corresponding period included a one off capital gain of Rs. 364Mn on the transfer of Peace Haven to PH Resorts, a joint venture company. Underlying earnings, adjusted for one-off items, recorded a growth of 29.5% over last year. Our personal care business has grown revenue by 26.0%, to Rs. 5.9Bn with personal wash, oral care and home care categories contributing positively to sector top line growth. The sector enjoyed a good quarter with encouraging volume growth contributing to the increase in revenue. In addition to good financial performance we have also received industry recognition for the performance of our leading consumer brands. Our personal wash brand, Velvet was awarded Sri Lanka s Brand of the year, Local brand of the year and Product brand of the year at the recent brand excellence awards held by Sri Lanka Institute of Marketing. During the quarter, the sector divested its interest in the tissue and toilet paper category with the sale of Nimex. The Healthcare sector recorded a growth in revenue of 13.0% to Rs. 6.5Bn led by the higher contribution of our third hospital in Thalawathugoda, good growth at Wattala hospital and our recent acquisition, JL Morison. Our pharmaceutical segment s performance continued to be hampered by weak market conditions. The industry grew at 0.03% during the second quarter (Source: IMS). In these weak market conditions, the company maintained its market leadership position. J.L. Morison, achieved revenue growth of 5.3% to Rs. 1.3Bn, led by an increase in production at our pharmaceutical manufacturing operation, which grew by 21.4% over last year. This growth is being augmented by our investment in the upgrading of the facility to meet globally recognised Good Manufacturing Practices and an increase in capacity. The business has recovered well from the plant shutdown which impacted Q1 results. The Leisure sector achieved revenue growth of 39.4% to record Rs. 1.2Bn. The growth in sector revenue was driven by the Hotels segment with revenues of Rs. 638Mn, an increase of 86.9%, while earnings grew to Rs. 89Mn during the period under review. However year on year comparisons are not particularly meaningful due to the closure of Club Hotel Dolphin and Hotel Sigiriya for refurbishment during the corresponding period the previous year. During the period the hotels recorded an average occupancy rate of 73%. The Transportation sector posted revenues of Rs. 723Mn, 27.0% growth, with a strong contribution from the Maritime and Logistic segments. The Maritime segment continued to enjoy an increase in volumes driven by an increase in transhipment volumes to Sri Lanka, along with the addition of new destination ports during the last quarter. The Logistics segment consolidated its presence in container yard operations increasing capacity utilization and contributed to the overall sector earnings growth of 16.3%. Our IT solutions business, N-able recovered well from project delays in Q1 to enjoy a good quarter with the completion of several key contracts. The business recorded earnings of Rs. 43Mn for the year to date, a significant increase over the same period last year. The Power sector posted a revenue of Rs. 262Mn a decline of 22.1% over the previous year hampered by the low rainfall experienced in Q1. The heat rate reserve charge on the Heladhanavi income

3 statement led to the decline in sector profitability, recording a loss of Rs. 45Mn, a decline of 132.1% over the previous year. During the quarter, your Group entered into an agreement to sell its shareholding in Hemas Power PLC to a consortium of buyers, consisting of NDB Capital Holdings PLC, ACL Cables PLC and Trydan Partners Private Ltd, thus divesting the company s interest in the Power Sector. This is an important move for the Group in line with our strategy to focus on our core strengths of Wellness, Leisure and Mobility. This renewed focus on our core strengths coupled with ongoing investments in healthcare, personal care and leisure provides us with the confidence to weather an increasingly competitive business environment and achieve growth across our business sectors. Steven Enderby CEO Colombo November 12, 2014

4 Consolidated Income Statement Three Months Ended Change Six Months Ended Change Rs ' % % Revenue 8,393,133 6,756, ,660,114 12,835, Cost of Sales (5,284,260) (4,362,285) 21.1 (9,951,390) (8,317,200) 19.6 Gross Profit 3,108,873 2,394, ,708,724 4,517, Other Operating Income 126, ,322 (71.9) 159, ,532 (69.2) Selling and Distribution Costs (799,069) (707,104) 13.0 (1,594,453) (1,314,468) 21.3 Administrative Expenses (1,429,584) (1,180,861) 21.1 (2,794,097) (2,280,038) 22.5 Share of results of Joint ventures & Associates (3,209) 19,304 (116.6) (23,395) 23,990 (197.5) Operating Profit 1,003, , ,455,922 1,464,955 (0.6) Finance Cost (113,207) (163,959) (31.0) (246,169) (297,121) (17.1) Finance Income 30,655 36,520 (16.1) 64,919 94,287 (31.1) Profit Before Tax 921, , ,274,672 1,262, Income Tax Expense (203,688) (153,097) 33.0 (312,000) (285,028) 9.5 Profit for the Period 717, , , ,093 (1.5) Attributable to: Equity Holders of the Parent 640, ,495 (9.5) 886, ,203 (9.9) Non-Controlling Interests 77,261 (10,764) (817.8) 75,765 (7,110) (1,165.6) 717, , , ,093 (1.5) Earnings Per Share (Rs) Annualised Earnings Per Share (Rs) Dividend Per Share (Rs) Statement of Comprehensive Income Three Months Ended Six Months Ended Rs ' Profit for the Period 717, , , ,093 Other Comprehensive Income Net (loss)/gain on available-for-sale financial assets 527 (9,519) 533 7,604 Exchange differences on translation of foreign operations 468 (1,776) 300 (2,359) Net movement on cash flow hedges 57,739 11,447 68,313 2,889 Revaluation of land and buildings Income Tax on other comprehensive income Other Comprehensive Income for the period, net of tax 58, ,146 8,134 Total Comprehensive Income for the period, net of tax 776, ,883 1,031, ,227 Attributable to: Equity Holders of the Parent 664, , , ,227 Non-Controlling Interests 112,117 (808) 115,393 2, , ,883 1,031, ,227 The above figures are provisional and subject to audit. 2

5 Consolidated Statement of Financial Position As at Rs '000 ASSETS Non-Current Assets Property, Plant and Equipment 13,333,901 11,741,156 12,563,633 Investment Properties 1,683, ,453 1,683,130 Leasehold Right 124,819 88, ,847 Intangible Assets 1,508,020 1,289,578 1,333,219 Investment in Joint Ventures 1,939,182 2,975,222 2,018,096 Investment in Associates 393, , ,303 Other Non Current Financial Assets 434, , ,257 Deferred Tax Assets 57,850 45,237 58,581 19,474,624 17,394,283 18,647,066 Current Assets Inventories 3,514,815 2,982,517 3,822,873 Trade and Other Receivables 7,587,172 6,805,017 6,575,911 Tax Recoverable 67,560 69, ,436 Other Current Financial Assets 507, , ,758 Cash and Short Term Deposits 3,736,386 1,819,790 2,449,586 15,413,482 12,115,220 13,476,564 Total Assets 34,888,106 29,509,503 32,123,630 EQUITY AND LIABILITIES Capital and Reserves Stated Capital 1,600,603 1,600,603 1,600,603 Other Capital and Revenue Reserves 217, , ,289 Other Components of Equity 951,834 1,306, ,551 Retained Earnings 11,989,644 9,608,758 11,377,081 Equity attributable to equity holders of the parent 14,759,182 12,849,181 14,300,524 Non-Controlling Interests 3,425,231 3,060,777 3,329,111 Total Equity 18,184,413 15,909,958 17,629,635 Non-Current Liabilities Interest Bearing Loans and Borrowings 4,097,490 3,126,706 3,464,922 Other Non Current Financial Liabilities 92, , ,010 Deferred Tax Liabilities 294, , ,055 Employee Benefit Liability 427, , ,642 4,911,709 3,908,736 4,322,629 Current Liabilities Trade and Other Payables 8,079,332 6,851,434 7,373,718 Income Tax Liabilities 71, , ,199 Interest Bearing Loans and Borrowings 2,499,838 1,712,731 1,767,786 Bank Overdraft 1,141,154 1,006, ,663 11,791,984 9,690,809 10,171,366 Total Equity and Liabilities 34,888,106 29,509,503 32,123,630 Net Asset per share - (Rs) The above figures are provisional and subject to audit. These financial statements are in compliance with the requirements of the Companies Act No. 07 of Malinga Arsakularatne Chief Financial Officer - - The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board by, Husein Esufally Steven Enderby Chairman Chief Executive Officer Colombo November 12,

6 4 Hemas Holdings PLC- Interim Report 2nd Quarter Consolidated Statement of Changes in Equity Rs '000 Attributable to Equity Holders of the Parent Total Non Total Stated Other Other Component Of Equity Retained Controlling Equity Capital Capital & Revenue Revaluation Exchange Available for sale Cash flow hedge Earnings Interests Reserves Reserve Reserve Reserve Reserve Balance as at 1 April ,600, ,751 1,302,730 (1,730) 29,042 (15,565) 8,828,511 12,153,342 2,259,037 14,412,379 Profit for the period 984, ,203 (7,110) 977,093 Other comprehensive income (2,475) 6,441 2,168 6,134 2,000 8,134 Total comprehensive income (2,475) 6,441 2, , ,337 (5,110) 985,227 Dividends Paid - Ordinary Shares (231,881) (231,881) (68,104) (299,985) Transfer to/from during the period - Overhaul Reserve/ Heat and Lube oil Reserve - (75,975) 75, Available for sale reserve (14,567) (14,567) (4,852) (19,419) Transaction cost on Issue of shares (8,595) (8,595) - (8,595) Adjustment in respect of changes in Group Holding - (39,455) (39,455) 879, ,351 Balance as at 30 September ,600, ,776 1,302,730 (4,205) 20,916 (13,397) 9,608,758 12,849,181 3,060,777 15,909,958 Balance as at 1 April ,600, , ,147 (3,515) 7,370 (32,451) 11,377,081 14,300,524 3,329,111 17,629,635 Profit for the period 886, ,907 75, ,672 Other comprehensive income ,633 29,518 39,628 69,146 Total comprehensive income , , , ,393 1,031,818 Dividends Paid - Ordinary Shares (360,703) (360,703) (42,113) (402,816) Transfer to/from during the period - Overhaul Reserve/ Heat and Lube oil Reserve - (183,188) 137,391 (45,797) 45, Deffered Tax Attributable to Revaluation Reserve - (235) (235) (223) (458) Transaction cost on Issue of shares - (6,264) (6,264) (1,204) (7,468) Adjustment in respect of changes in Group Holding - (44,768) (44,768) (21,530) (66,298) Balance as at 30 September ,600, , ,912 (3,163) 7,903 (3,818) 11,989,644 14,759,182 3,425,231 18,184,413

7 Company Income Statement Rs '000 Three Months Ended Change Six Months Ended Change % % Revenue 167, , , , Cost of Sales Gross Profit 167, , , , Other Operating Income 285, ,964 (20.5) 287, ,831 (20.5) Administrative Expenses (151,129) (127,212) 18.8 (284,116) (234,865) 21.0 Operating Profit 302, ,647 (22.3) 339, ,685 (18.0) Finance Cost (60,155) (71,802) (16.2) (105,908) (159,838) (33.7) Finance Income 30,617 18, ,085 47, Profit Before Tax 272, ,721 (18.8) 292, ,564 (3.1) Income Tax Expenses (7,469) 2,000 (473.5) (34,333) (4,089) Profit for the Period 265, ,721 (21.5) 257, ,475 (13.3) Statement of Comprehensive Income Three Months Ended Six Months Ended Rs ' Profit for the Period 265, , , ,475 Other Comprehensive Income Net (loss)/gain on available-for-sale financial assets 527 (9,589) 533 2,882 Exchange differences on translation of foreign operations Net movement on cash flow hedges Revaluation of land and buildings Income Tax on other comprehensive income Other Comprehensive Income for the period, net of tax 527 (9,589) 533 2,882 Total Comprehensive Income for the period, net of tax 265, , , ,357 The above figures are provisional and subject to audit 5

8 Statement of Financial Position -Company As at Rs '000 ASSETS Non-Current Assets Property, Plant and Equipment 145, , ,472 Investment Properties 617, , ,615 Intangible Assets 21,979 19,062 23,192 Investment in Subsidiaries 6,513,934 6,466,343 6,334,445 Investment in Joint Ventures 30,044 38,519 30,044 Other Non Current Financial Assets 396, , ,455 7,725,467 7,636,128 7,600,223 Current Assets Trade and Other Receivables 623,400 1,216, ,644 Tax Recoverable 5,878 8,621 17,940 Other Current Financial Assets 512, , ,030 Cash and Short Term Deposits 1,217,034 54, ,468 2,359,261 2,073,269 1,180,082 Total Assets 10,084,728 9,709,397 8,780,305 EQUITY AND LIABILITIES Capital and Reserves Stated Capital 1,600,603 1,600,603 1,600,603 Other Capital Reserves 257, , ,032 Other Components of Equity 7,158 20,671 6,625 Retained Earnings 4,875,405 4,656,066 4,978,113 Total Equity 6,740,198 6,534,372 6,842,373 Non-Current Liabilities Interest Bearing Loans and Borrowings 1,825,924 1,939, ,161 Other Non Current Financial Liabilities 8,840 4,383 8,840 Deferred Tax Liabilities 63,560 55,285 53,917 Employee Benefit Liability 18,679 28,571 33,809 1,917,003 2,027, ,727 Current Liabilities Trade and Other Payables 219, , ,451 Interest Bearing Loans and Borrowings 903, , ,580 Bank Overdraft 304, ,459 98,174 1,427,527 1,147, ,205 Total Equity and Liabilities 10,084,728 9,709,397 8,780,305 Net Asset per share - (Rs) The above figures are provisional and subject to audit. These financial statements are in compliance with the requirements of the Companies Act No. 07 of Malinga Arsakularatne Chief Financial Officer The Board of Directors is responsible for the preparation and presentation of these financial statements. Signed for and on behalf of the Board by, Husein Esufally Chairman Colombo November 12, 2014 Steven Enderby Chief Executive Officer 6

9 Statement of Changes in Equity- Company Other Component Of Equity Rs '000 Stated Capital Other Capital Reserves Available for Sale Reserve Retained Earnings Total Equity Balance as at 1 April ,600, ,032 17,789 4,590,472 6,465,896 Profit for the period , ,475 - Other comprehensive income - - 2,882-2,882 Total comprehensive income - - 2, , ,357 Dividends Paid - Ordinary Shares Final dividend paid 2012/2013 (231,881) (231,881) Balance as at 30 September ,600, ,032 20,671 4,656,066 6,534,372 Balance as at 1 April ,600, ,032 6,625 4,978,113 6,842,373 Profit for the period , ,995 Other comprehensive income Total comprehensive income , ,528 Dividends Paid - Ordinary Shares Final Dividend Paid 2013/2014 (360,703) (360,703) Balance as at 30 September ,600, ,032 7,158 4,875,405 6,740,198 The above figures are provisional and subject to audit 7

10 Cash Flow Statement Group Company For Six months ended 30 September Rs '000 Operating Activities Profit Before Taxation 1,274,672 1,262, , ,564 Adjustments for Depreciation 402, ,453 25,487 18,420 (Gain)/Loss on Disposal of Property, Plant and Equipment (98,058) (374,880) (104) 40 Amortisation/ Impairment of Intangible Assets 4,046 28, Amortisation of Leasehold Rights 7,408 1, Impairment Property, Plant and Equipment/Leasehold Rights 6,500 - Exchange Gain or Loss on Foreign Currency Borrowings 6,418 71, Re-classification of Available for sale reserve to Profit and Loss - (19,417) - - Finance Cost 246, , , ,838 Finance Income (64,919) (94,287) (59,085) (47,717) Share of results of Associates/Joint Ventures 23,395 (23,990) - - Investment Income - - (283,348) (357,096) Movement in Employee Benefit Liability 48,774 35,455 4,121 1,657 Working Capital Adjustments (Increase)/Decrease in Inventories 308,059 (29,696) - - (Increase)/Decrease in Trade and Other Receivables (986,513) (834,998) (305,758) (187,575) Increase/(Decrease) in Trade and Other Payables 431,203 1,204,246 86,024 (17,719) Increase/(Decrease) in Other Non Current Liabilities 1, Increase/(Decrease) in Other Non Current Financial Liabilities - 5, Finance Cost Paid (246,169) (297,109) (105,908) (159,838) Finance Income Received 54,862 71,478 55,202 37,921 Income Tax Paid (264,366) (248,213) (12,628) (3,297) Employee Retirement Benefit Paid (47,918) (14,340) (19,251) - Net Cash flows from/(used in) Operating Activities 1,107,940 1,358,592 (217,012) (253,101) Investing Activities Purchase of Property, Plant and Equipment (549,896) (895,087) (3,491) (30,180) Investment in Intangible Assets (17,215) (71,122) - (19,365) Disposal of/ Investment in Financial Assets 40,448 (38,834) 33,850 (1,951) Investment in Subsidiaries/Joint Ventures (3,000) (1,536,775) (179,489) - Acquisition/ Disposal of Subsidiary (536,665) (1,998,897) - (122,211) Dividend Received from Joint Venture/Associate 39, Investment Income Received , ,096 (Profit)/Loss on Disposal of Property, Plant and Equipment/ Intangible Assets 147, ,799 3,167 2,121 / Leasehold Property Net Cash flows from/(used in) Investing Activities (880,198) (3,777,916) 137, ,510 Financing Activities Interest Bearing Loans and Borrowings (Net) 1,355,211 2,194,404 1,086,107 (46,443) Transaction cost on Subsidiary Share Issue (7,469) (8,595) - - Proceeds from Non-Controlling Interests (106,668) (592,126) - - Dividends Paid - Equity Holders of the Parent (360,703) (231,881) (360,703) (231,881) - Non-Controlling Interests (42,113) (68,104) - - Net Cash flows from/(used in) Financing Activities 838,258 1,293, ,404 (278,324) Net Increase/(Decrease) in Cash and Cash Equivalents 1,066,000 (1,125,626) 645,777 (345,915) Net Foreign Exchange Difference 309 3, Cash and Cash Equivalents at the beginning of the Year 1,528,923 1,936, ,293 44,018 Cash and Cash Equivalents at the end of the period 2,595, , ,070 (301,897) The above figures are provisional and subject to audit 8

11 9 Hemas Holdings PLC- Interim Report 2nd Quarter Segmental Information FMCG Healthcare Leisure Transportation Power Others Group For Three months ended 30 September Rs '000 Revenue Segmental Revenue - Gross 3,065,060 2,477,913 3,523,464 3,040, , , , , , , , ,768 8,652,529 7,055,097 Intra Segmental Revenue - - (30,425) (38,287) (23,949) (20,166) (54,374) (58,453) Segmental Revenue 3,065,060 2,477,913 3,493,039 3,002, , , , , , , , ,602 8,598,155 6,996,644 Inter Segmental Revenue (205,022) (239,753) (205,022) (239,753) Total Revenue 3,065,060 2,477,913 3,493,039 3,002, , , , , , , , ,849 8,393,133 6,756,891 Segmental Results 364, , , ,211 46,975 (23,000) 108, , , ,723 (18,766) 290,119 1,006, ,963 Finance Cost (249) (1,306) (39,999) (60,869) (8,106) (48,464) (5,855) (5,393) (7,772) (9,218) (51,226) (38,709) (113,207) (163,959.00) Finance Income 4,858 13,439 2,149 4,300 3,363 1,774 7,718 8,175 1,445 1,635 11,122 7,197 30,655 36,520 Share of results of Joint ventures & Associates ,149-37, (51,307) 18, (3,209) 19,304 Profit/(Loss) before Tax 368, , , ,642 52,381 (69,690) 148, ,953 47, ,472 (58,870) 258, , ,828 Income Tax (37,722) (40,482) (77,695) (37,046) (10,057) (21,523) (20,335) (13,906) (2,443) (4,449) (55,436) (35,691) (203,688) (153,097) Profit / (Loss) for the Period 331, , , ,596 42,324 (91,213) 127, ,047 44, ,023 (114,306) 222, , ,731 Attributable to: Equity Holders of the Parent 329, , , ,170 20,333 (35,405) 120, ,305 6,255 64,832 (115,780) 213, , ,495 Non-Controlling Interests 1,384 (1,556) 6,195 (12,574) 21,991 (55,808) 7,562 1,742 38,655 48,191 1,474 9,241 77,261 (10,764) 331, , , ,596 42,324 (91,213) 127, ,047 44, ,023 (114,306) 222, , ,731 The above figures are provisional and subject to audit

12 10 Hemas Holdings PLC- Interim Report 2nd Quarter Segmental Information FMCG Healthcare Leisure Transportation Power Others Group For Six months ended 30 September Rs '000 Revenue Segmental Revenue - Gross 5,938,735 4,714,864 6,561,416 5,817,004 1,217, , , , , ,704 1,472,641 1,035,116 16,175,495 13,345,474 Intra Segmental Revenue (62,574) (65,806) (46,763) (40,194) (109,337) (106,000) Segmental Revenue 5,938,735 4,714,864 6,498,842 5,751,198 1,217, , , , , ,704 1,425, ,922 16,066,158 13,239,474 Inter Segmental Revenue (406,044) (404,335) (406,044) (404,335) Total Revenue 5,938,735 4,714,864 6,498,842 5,751,198 1,217, , , , , ,704 1,019, ,587 15,660,114 12,835,139 Segmental Results 619, , , ,720 43,337 (54,099) 190, , , ,140 (140,133) 163,286 1,479,317 1,440,965 Finance Cost (1,628) (2,096) (109,181) (100,589) (19,091) (102,597) (12,138) (10,065) (18,971) (17,466) (85,160) (64,308) (246,169) (297,121) Finance Income 8,752 41,236 3,632 9,401 6,518 4,641 14,392 22,767 1,787 3,191 29,838 13,051 64,919 94,287 Share of results of Joint ventures & Associates ,765 (789) 72,153 (4,135) (128,313) 28, (23,395) 23,990 Profit/(Loss) before Tax 627, , , ,532 63,529 (152,844) 264, ,388 (5,399) 258,779 (195,455) 112,029 1,274,672 1,262,121 Income Tax (63,809) (70,765) (103,128) (99,154) (14,974) (19,749) (34,511) (39,130) (3,987) (8,511) (91,591) (47,719) (312,000) (285,028) Profit / (Loss) for the Period 563, , , ,378 48,555 (172,593) 230, ,258 (9,386) 250,268 (287,046) 64, , ,093 Attributable to: Equity Holders of the Parent 561, , , ,720 25,749 (75,305) 219, ,358 (45,414) 141,381 (289,095) 53, , ,203 Non-Controlling Interests 1,651 (619) 2,133 (33,342) 22,806 (97,288) 11,098 4,900 36, ,887 2,049 10,352 75,765 (7,110) 563, , , ,378 48,555 (172,593) 230, ,258 (9,386) 250,268 (287,046) 64, , ,093 The above figures are provisional and subject to audit

13 Notes to the Financial Statements 1 Basis of preparation The condensed interim financial statements have been prepared in accordance with Sri Lanka Accounting Standard LKAS- 34, Interim Financial Reporting. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 March Further, provisions of the Companies Act No. 7 of 2007 have been considered in preparing the interim financial statements. The previous years'/periods' figures and phrases have been amended where relevant, for better presentation and to be comparable with those of the current period. 2 Changes in Accounting Policies (a) SLFRS 10 Consolidated Financial Statements SLFRS 10 replaces the portion of LKAS 27 Consolidated and separate financial statements that addresses the accounting for consolidated financial statements. It also includes the issues raised in Standing Interpretations Committee (SIC) 12 Consolidation Special Purpose Entities. SLFRS 10 establishes a single control model that applies to all entities including special purpose entities. The changes introduced by SLFRS 10 will require management to exercise significant judgment to determine which entities are controlled, and therefore are required to be consolidated by a parent, compared with the requirements that were in LKAS 27. SLFRS 10 has had no impact on the consolidation of investments held by the Group. (b) SLFRS 11 Joint Arrangements SLFRS 11 replaces LKAS 31 Interests in joint ventures and SIC on Jointly-controlled entities and Non-monetary contributions by venturers. SLFRS 11 removes the option to account for Jointly Controlled Entities (JCEs) using proportionate consolidation.instead, JCEs that meet the definition of a joint venture must be accounted for using the equity method. Accordingly, previous years'/periods' figures and phrases have been amended due to the retrospective application of equity method of accounting and cessation of proportionate consolidation of joint ventures as recommended by the said standard. (c) SLFRS 12 Disclosure of Interest in Other Entities SLFRS 12 sets out the requirements for disclosures relating to an entity s interests in subsidiaries, joint arrangements,associates and structured entities.none of these disclosure requirements are applicable to the interim condensed consolidated financial statements, unless significant events and transactions in the interim period require that they are disclosed. Accordingly, the Group has not made any such disclosures. (d) SLFRS 13 Fair Value Measurement SLFRAS 13 establishes a single source of guidance under SLFRS for all fair value measurements. It provides guidance on all fair value measurements under SLFRSs. The application of SLFRS 13 has not materially impacted the fair value measurements carried out by the Group. 3 The Group invested Rs. 165Mn in Serendib Hotels PLC on 6 June 2014 thereby increasing the group stake to 55%. 4 The Group invested Rs Mn in Hemas Logistics Private Limited on 2 April 2014 thereby increasing the group stake to 58%. 5 The Group invested Rs. 3 Mn in Far Shipping Agency Lanka (Private) Limited. on 27 May 2014 thereby obtaining 60% group stake in Far shipping Agency Lanka (Private) Limited. 6 The Company paid a final dividend of Rs per share for the financial year ended 31 March The Board of Directors of the Company has declared an interim dividend of Rs per share for the financial year ending 31 March As required by section 56(2) of the Companies Act No 07 of 2007, the Board of Directors has confirmed that the Company satisfies the solvency test in accordance with section 57 of the companies Act No. 07 of 2007, and has obtained a certificate from the Auditors, prior to declaring the interim dividend which was paid on 02 December In accordance with the Sri Lanka Accounting Standard (LKAS 10) - Events After the Reporting Date, the interim dividend has not been recognized as a liability in the financial statements as at 30 September Hemas Holdings PLC issued ten million, rated (A+lka, by Fitch Rating Lanka Limited) unsecured redeemable debentures carrying a coupon rate of 11% p.a., payable semi-annually, at the face value of LKR 100/- each on 29 April 2014 to raise Rupees one billion to be matured on 29 April The Company entered into a Share Sale and Purchase agreement dated 13 October 2014,with a consortium of buyers to dispose 93,900,000 shares of Hemas Power PLC at a consideration of Rs. 1,680 Mn at the rate of Rs per share. In terms of the agreement Hemas Power PLC is required to fulfilled following conditions prior to completion of the transaction. - Divest its investments in Heladanavi (Thermal Plant) - Change the name of the Company 10 The Group Divested 60,000,000 Shares of Heladhanavi Limited at a total Consideration of RS.532Mn on 24 October There have been no other events subsequent to the reporting date, which require disclosure in the interim financial statements. 12 There have been no significant changes in the nature of the contingent liabilities which were disclosed in the Audited Financial Statements for the year ended 31 March

14 Investor Information Three months Ended Market Value of Shares Closing Price on 30 September (Rs) Highest Price during the Period (Rs) Lowest Price during the Period (Rs) Market Capitalization on 30 September (Rs Mn) 31,433 16,489 Ratios Net Asset Per Share on 30 September (Rs) Price Earnings Ratio on 30 September (times) Debt/Equity Ratio 43% 37% Quick Asset Ratio Interest Cover Interest yield as at date of last trade (17 June 2014) 10.42% - Yield to maturity of trade done on 17 June % - Interest rate of comparable Government security (5 Year Treasury Bond rate ) 6.59% - Closing Price on 30 September (Rs) Highest Price during the Period (Rs) Lowest Price during the period (Rs) Share Trading No of transactions during the Period 4,638 1,272 No of shares traded during the Period 66,702,200 9,707,863 Value of shares traded during the Period (Rs Mn) 3, Number of Shares 515,290, ,290,620 12

15 Share Information LIST OF 20 MAJOR SHAREHOLDERS No. of Shares % No. of Shares % 1 A Z Holdings (Pvt) Ltd. 90,762, ,762, Saraz Investments (Pvt) Ltd. 86,396, ,396, Bluberry Investments (Pvt) Ltd. 85,781, ,781, Amagroup (Pvt) Limited 85,780, ,780, HSBC Intl Nominees Ltd-JPMLP-Franklin Templeton 37,153, Investment Funds 6 HSBC Intl. Nom Ltd-SSBT-National Westminster Bank PLC 9,732, ,732, as a depository of First State Indian Subcontinent Pemberton Asian Opportunities Fund 6,650, HSBC Intl. Nom Ltd-SSBT-National Westminster Bank PLC 6,272, ,272, as a depository of First State Asia Pacific Susta 9 Mr. M.A.H. Esufally 5,946, ,946, Mr. H.N. Esufally 5,836, ,836, HSBC Intl. Nominees Ltd. -JPMCB- Scottish ORL SML TR GTI 5,149, ,149, Jacey Trust Services (Pvt) Ltd -Account No 2 4,750, ,750, Mr. I.A.H. Esufally 4,424, ,424, Anverally and sons (pvt) Ltd A/C no 01 4,207, ,207, HSBC Intl Nom Ltd-JPMCB- Pacific Assests Trust PLC 3,051, ,051, Mellon Bank N.A.-Frontier Market Select Fund II L.P 2,805, Mellon Bank N.A.-Frontier Market Oppprtunities Master Fund,L.P 2,765, Cocoshell Activated Carbon Company Ltd. 2,597, ,829, HSBC International Nominess Ltd-JPMCB-Templeton Global 2,379, Invetment Trust -Templeton Emerging Market - 20 Mr.A.N. Esufally 2,283, ,283, DIRECTORS' SHAREHOLDING No. of Shares No. of Shares DIRECTORS' INDIRECT SHAREHOLDING A Z Holdings (Pvt) Ltd. 90,762,875 90,762,875 Saraz Investments (Pvt) Ltd. 86,396,035 86,396,035 Blueberry Investments (Pvt) Ltd. 85,781,250 85,781,250 Amagroup (Pvt) Ltd. 85,780,665 85,780,665 DIRECTORS' DIRECT SHAREHOLDING Mr. H.N. Esufally (Chairman) 5,836,705 5,836,705 Mr. A.N. Esufally 2,283,585 2,283,585 Mr. I.A.H. Esufally 4,424,000 4,424,000 Mr. M.E. Wickremesinghe 11,250 11,250 Mr. M. A. H. Esufally 5,946,500 5,946,500 Mr. Pradipta Kumar Mohapatra - - Dr S.A.B Ekanayake - - Mr. D.S. Weerakkody - - Mr. S.M Enderby (Chief Executive Officer) - - Mr. W.M.De F. Arsakularatne ,222, ,222, PUBLIC HOLDING No. of Shares No. of Shares Issued Share Capital 515,290, ,290,620 Less:Directors' Direct and Indirect Shareholding 367,222, ,310,365 Close Family Members 2,500,000 - Public Holding 145,567, ,980,255 Public Holding as a % of Issued Share Capital 28.25% 28.72% Total Number of Shareholders 5,137 Number of persons holdings Shares Excluded when computing Public 12 Holding % Number of Shareholders representing the Public Holding 5,125 13

16 Corporate Information Legal Form Quoted Public Company with limited liability listed on the Colombo Stock Exchange on 15 October 2003 Date of Incorporation 10 December 1948 Date of Re-Registration 30 May 2007 New Registration Number PQ 6 Accounting year end 31 March Registered Office Hemas House No. 75, Braybrooke Place, Colombo 2. Website Auditors Ernst & Young Chartered Accountants No. 201, De Saram Place, Colombo 10. Directors Husein Esufally (Chairman) Steven Enderby (CEO) Imtiaz Esufally Murtaza Esufally Abbas Esufally Maithri Wickremesinghe Pradipta Mohapatra Ramabadran Gopalakrishnan Dr Anura Ekanayake Dinesh Weerakkody Malinga Arsakularatne Secretaries Hemas Corporate Services (Pvt) Ltd. No.75, Braybrooke Place, Colombo 02. Telephone: (hunting) Facsimile: Registrars SSP Corporate Services (Pvt) Ltd 101, Inner Flower Road Colombo 03 Lawyers to the Company D.L. & F De Saram No. 47, Alexandra Place, Colombo 7 Bankers Bank of Ceylon Commercial Bank of Ceylon PLC Deutsche Bank AG Hong Kong & Shanghai Banking Corp. Ltd. Hatton National Bank PLC Standard Chartered Bank Nations Trust Bank PLC People's Bank DFCC Bank PLC National Development Bank PLC Sampath Bank PLC